New Market Tax Credit
Mane Gulf Mane Research Institute recently received $4,000,000 construction loan, under the federal New Markets Tax Credit Program.
This credit is an incentive for lenders to invest in certain areas, these areas are based on the areas average income, and average income. The lender can claim up to 40% of the amount they loaned. Texas Community Development Capital, a subsidiary of TXCDC, was awarded $75 million of tax credit authority in October of 2009. The credits are available for deployment for qualified projects and businesses in qualified census tracks within Texas. Approximately 64% of the allocation will be targeted to urban communities. The remaining 36% will be committed to rural areas. The majority of the investments will target businesses and projects located in higher distressed neighborhoods. In certain circumstances, NMTC may be used to finance mixed-use projects, where less than 80% of the gross rental income comes from dwelling units. In some cases, it may be possible to segregate an investment in a mixed-use project to eliminate the issue of the 80% rental cap.
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